HF 167

as introduced - 93rd Legislature (2023 - 2024) Posted on 01/09/2023 09:45am

A bill for an act
relating to taxation; individual income tax; proposing a refundable tax credit for
tax years 2021 and 2022.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin INCOME TAX REBATES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The definitions in Minnesota Statutes, section 290.01, apply
to this section.
new text end

new text begin Subd. 2. new text end

new text begin Tax rebate credit. new text end

new text begin For taxable years beginning after December 31, 2020, and
before January 1, 2024, an individual income taxpayer is allowed a credit against the taxes
imposed in Minnesota Statutes, sections 290.03 and 290.091. The credit equals $1,000 each
taxable year for all filers.
new text end

new text begin Subd. 3. new text end

new text begin Part-year residents. new text end

new text begin For an individual who was a resident of Minnesota for
less than the entire taxable year, the credit equals the amount determined under subdivision
2 for the individual's filing status, multiplied by the percentage determined pursuant to
Minnesota Statutes, section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin Subd. 4. new text end

new text begin Credit refundable; appropriation. new text end

new text begin (a) If the amount of credit which a claimant
is eligible to receive under this section exceeds the claimant's liability for tax for taxes
imposed under Minnesota Statutes, sections 290.03 and 290.091, the commissioner shall
refund the excess to the claimant.
new text end

new text begin (b) An amount sufficient to pay the refunds required by this section is appropriated to
the commissioner from the general fund.
new text end

new text begin Subd. 5. new text end

new text begin Distribution of credit payments; filing process for taxpayers without tax
liability. new text end

new text begin (a) To the extent feasible, the commissioner must automatically adjust the return
of any taxpayer who filed a return for a taxable year in which the credit under this section
applies. If a taxpayer is eligible for a refund as a result of the credit under this section, to
the extent feasible, the commissioner must distribute the refund via direct deposit to the
taxpayer's bank account, check, or any other mechanism the commissioner deems appropriate.
new text end

new text begin (b) The commissioner must establish a simplified filing process through which a taxpayer
who did not file a return due to a lack of individual income tax liability may file a return
for the taxable years in which the credit is available. The filing process and forms may be
in the form or manner determined by the commissioner, but must be designed to reduce the
complexity of the filing process and the time needed to file for individuals without an income
tax liability for the taxable year.
new text end

new text begin Subd. 6. new text end

new text begin Recapture of payments forbidden. new text end

new text begin The commissioner of revenue must not
apply, and must not certify to another agency to apply, a payment resulting from the credit
under this section to any unpaid tax or nontax debt owed by an individual.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2020, and before January 1, 2023.
new text end